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1Suppose a five-year, $ 1 000 bond with annual coupons has a price of $ 903.57 and a yield to maturity of 6.1 %. What
1Suppose a five-year, $ 1 000 bond with annual coupons has a price of $ 903.57 and a yield to maturity of 6.1 %. What is the bond's coupon rate? 2Suppose that Telstra Corporation Ltd issued a bond with 10 years until maturity, a face value of $ 1 000, and a coupon rate of 7.1% (annual payments). The yield to maturity on this bond when it was issued was 5.6 %. Assuming the yield to maturity remains constant, what is the price of the bond immediately after it makes its first coupon payment? 3Assume the current yield curve shows that the spot rates for six months, one year, and one and a half years are 1%, 1.1% and 1.3%, respectively, all quoted as semi-annually compounded APRs. What is the price of a $1000 par, 5% coupon bond maturing in one and a half years (the next coupon is exactly six months from now)
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